Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Additionally, when coupled with a cash machine, our test restaurants have been able to allow for a more efficient servicing of our guests with less labor, especially at peak traffic periods |
| As we go forward, we aim to lean into this differentiating strength through our marketing and product development, both to drive our top line growth and help us achieve the immense potential we have ahead of us |
| And the second store is above our expectations as well |
| So we feel good about where we're headed there |
| During the fourth quarter, we continued to make great progress in reemphasizing what makes our brand unique, our one-of-a-kind, better-for-you grilled chicken offering |
| So it's -- we're getting a good return on those |
| And we're seeing a good sales momentum from the remodels |
| As we move into 2024, we are pleased with the progress we are making in our labor improvement initiatives and we are focusing on identifying additional savings and efficiencies across the P&L as we continue to improve restaurant level margins |
| We are excited about the sales momentum in the business as we move past some of the underlying weather impact experienced in Q1 and feel we have created a strong marketing plan and calendar for the remainder of the year |
| In addition, we are excited to announce an acceleration in our remodeling efforts for both the company-owned and franchise system to continue to enhance our restaurants and provide our customers with a more modern dining experience |
| We are also very focused on improving our development capabilities from helping franchisees with better site selection to significantly cost engineering our new builds for company and franchise units |
| I am excited about the work we have done with our franchisees in the past few months in this area |
| We were encouraged to see sequential improvement in catering sales from the third quarter |
| We also believe that we can drive additional consistency through simplification and labor efficiencies, and we have several initiatives in place to drive that consistent experience and reduce or optimize labor in our restaurants |
| It's really helped us with being efficient when it comes to our customers putting their orders as well as our team members preparing the orders for the -- our customers |
| This includes building a compelling employer brand with strategies aligned with our values as well as creating a culture of accountability and recognition while fostering a positive and inclusive environment |
| We have been thrilled by the seamless adoptions by our guests |
| It is an exciting time to be at El Pollo Loco, and I'm thrilled to be working alongside Liz Williams our new CEO, who starts on March 11 and the rest of the management team as we unlock our brand's long-term potential |
| And we're -- so far, we're seeing good results there and plan on rolling that out when we -- April 1, consist -- at the same time, minimum wage goes up |
| From a good news standpoint, I will tell you, yes, we did open our second store in Denver, and we're very excited how both of them are performing |
| We're excited to be able to emphasize our better-for-you chicken offerings while providing a relevant seafood option during this time of year |
| With a new catering menu that provides broader offering beyond our chicken on the bone, we still believe our catering channel mix has the opportunity to grow to approximately 5% of sales over time |
| We are doing this carefully to ensure the El Pollo Loco experience is best-in-class for our customers and consistent across our entire system |
| The new menu board has received positive customer feedback for appearing more modern and premium |
| So we are very excited about how the two stores in Denver are performing |
| This will ensure operational excellence as new markets open and as we grow in markets where El Pollo Loco is relatively newer and less well known to consumers |
| Franchise revenue increased 17% to $11 million during the fourth quarter, driven by a 1.6% increase in franchise comparable restaurant sales as well as five new franchise restaurant openings during or subsequent to the fourth quarter of 2022 and 18 refranchise restaurants I've mentioned earlier |
| We're getting a mid-single-digit sales lift from the remodels when we're spending a little under $400,000 on average for these remodels |
| And for us, when we rolled out our menu boards last December, we know that our customers are looking for favorable food and also consistent value |
| The first one which opened over a year ago is still performing very well |
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| Just firstly, on the development guidance, I think slightly below our expectations for the system openings |
| Company operated restaurant revenue decreased 5.7% to $94 million from $99.6 million in the same period last year |
| For the fourth quarter ended December 27, 2023, total revenue decreased 3.2% to $112.2 million compared to $115.9 million in the fourth quarter of 2022 |
| The decrease in company-operated restaurant sales was primarily driven by a $5.8 million decrease in revenue from the refranchising of 80 company-operated restaurants to existing franchisees in prior quarters as well as a 0.2% decrease in company-operated restaurant sales |
| I think we've seen the consumer under pressure a little bit for a couple of quarters as we've seen them |
| So the combination of that and the fact that we're actually seeing a little more Lunch business, which has a lower check, has weighed on our check a little bit |
| But I do think the lower end consumer is under a little bit of pressure, and I do think we're seeing that in regards to our check |
| And we're seeing a little fall off on family meals as well |
| The decrease in comparable restaurant sales included a 0.4% decrease in average check size, offset by a 0.2% increase in transactions |
| Food and paper costs as a percentage of company restaurant sales decreased 140 basis points year-over-year to 26.9% due to higher menu prices |
| So the first question, in regards to the commodities, I don't know if there was any one item that drove that unfavourability |
| These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we currently expect |
| We are reducing it from six LTOs to five LTOs this year |
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